Privacy-focused cryptocurrency Zcash is regaining attention, with several prominent crypto investors and analysts suggesting it may currently offer greater investment value than Bitcoin.
Amid this debate, data from the on-chain analytics platform Santiment shows that Zcash rose 75% over the past week. Meanwhile, Bitcoin, affected by broader geopolitical uncertainty, fell 2.3% over the past 24 hours to $79,684 as of press time.
Trader Anselm said that Zcash has advantages that Bitcoin lacks.
Cryptocurrency trader Anselm (also known as Zion Thomas) recently explained why he believes Zcash currently has an advantage over Bitcoin.
He noted that one vulnerability of Bitcoin is that future advancements in quantum computing could make it more susceptible to attacks. He believes Zcash’s advantage lies in its use of quantum-resistant technology combined with strong privacy features.
Anselm also said he currently prefers Zcash because Bitcoin has become increasingly linked with large institutions.
He explained that early cryptocurrency supporters wanted a financial system that governments and corporations could not easily control. In his view, Zcash still embodies these original ideals because it is not as institutionalized as Bitcoin.
He also noted that attitudes toward Zcash are changing. During previous cryptocurrency cycles, many criticized Zcash for lagging behind other major cryptocurrencies. But now, with growing global concerns about surveillance and financial tracking, interest in privacy-focused cryptocurrencies is rising again.
Santiment says privacy coins are regaining attention.
Blockchain analytics firm Santiment noted that privacy cryptocurrencies have recently gained momentum as trust in governments declines and financial regulation becomes stricter.
The company said that many retail investors view privacy coins as a safeguard against increasing surveillance, stricter trading regulations, and AI-driven financial tracking.
Santiment also noted that some traders believe stricter stablecoin regulations and stronger identity verification (KYC) could increase demand for decentralized privacy networks, similar to past cryptocurrency cycles.
Even after the recent rally, Zcash is currently trading about 22% below the price it reached six months ago, when it briefly rose above $735.
Multicoin Capital has established a large position in Zcash
Institutional interest in Zcash is also growing, with reports indicating that Multicoin Capital has been accumulating heavily since February.According to Tushar Jain, co-founder and managing partner.
Jain described Zcash as a return to the "cypherpunk" values upheld by the early cryptocurrency movement. He believes that although Bitcoin has some resistance to censorship, governments can still target publicly visible Bitcoin holdings through measures such as taxation or asset seizure.
Jain believes that as governments around the world increase regulation of finance, private digital assets may become more important.
He also added that Multicoin believes demand for private, censorship-resistant, and seizure-resistant assets is growing, and views Zcash as one of the strongest ways to invest in this idea through the public cryptocurrency market.
In summary, despite the continued price rise of privacy-focused cryptocurrencies, Bitcoin has recently faced downward pressure due to renewed geopolitical tensions and overall weakness in financial markets. Nevertheless, many institutional investors still view it as the primary long-term reserve asset in the cryptocurrency space.
Related:Bitcoin holds above $80,000 as other cryptocurrencies move toward the key $200 billion mark.